The squeeze

One signal I look for is the Bollinger band squeeze. Investopedia. com "The "squeeze" is the central concept of Bollinger Bands®. When the bands come close together, constricting the moving average, it is called a squeeze. A squeeze signals a period of low volatility and is considered by traders to be a potential sign of future increased volatility and possible trading opportunities.

Conversely, the wider apart the bands move, the more likely the chance of a decrease in volatility and the greater the possibility of exiting a trade. However, these conditions are not trading signals. The bands give no indication when the change may take place or in which direction the price could move."

Sounds a lot like the TTM Squeeze popularized by Simpler Trading. I believe they call it a squeeze when the Bollinger Bands go inside the Keltner Channel. A trigger is generated when the Bollinger Bands go back outside the Keltner Channel. Buy signal if the upper Bollinger Band and sell signal if the lower Bollinger Band. Of course this is used together with other signals such ADX.

When you see the band squeezing such as on RBLX starting on 10/14 to the close (on an 8 chart) you know you are at a time of low volatility. This is a signal to traders that this is future increased volatility and thus a trading signal. The more the BB separate the higher the probability in decreased volatility. John Bollinger suggests using the MACD and RSI. When I see a set up like RBLX on 10/14 I expect the stock to surge. Monday morning on the open I gave it a look see and I entered a call @ 9:55, drew my trend line and exited @ 1:36. You can see the expansion of the BB's and can be fairly certain the stock will pull back. I am not a day trader, but I seldom am in any trade longer that 1-2 hours. My shortest trade has been 2 minutes. I generally only do 1 trade a day and only when I see what shows me I may make a little "coin". Another signal I like is moving averages which actually I use almost all of the time. But I like seeing these squeezes. Some I trade and some I practice.

Dan Wrote:
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> Sounds a lot like the TTM Squeeze popularized by
> Simpler Trading. I believe they call it a squeeze
[royal-game-of-ur.com]
> when the Bollinger Bands go inside the Keltner
> Channel. A trigger is generated when the
> Bollinger Bands go back outside the Keltner
> Channel. Buy signal if the upper https://eldfall-chronicles.com/product-category/miniatures/class/mage/ Band
> and sell signal if the lower Bollinger Band. Of
> course this is used together with other signals
> such ADX.
You can see the expansion of the BB's and can be fairly certain the stock will pull back. I am not a day trader, but I seldom am in any trade longer that 1-2 hours. My shortest trade has been 4 minutes.



Edited 2 time(s). Last edit at 04/25/2023 04:12AM by JamesBasej.

I don't use TOS charts but this fellow gives tons of information on a squeeze. I use Bollinger Bands and listened to Markay Latimer. [www.youtube.com]

Look at the 55 chart today (1/27/23) of TSLA. First it consolidated from 1/23 to 1/26 and BB's grew tight into a squeeze. Had you traded a call after the pull back into the BB's....big bucks! BTW worked on the 8 chart too.



Edited 1 time(s). Last edit at 01/27/2023 12:02PM by Darcy3.

META on 2/7/23 was showing a squeeze on the 55 and 34 so at 3:14 off an 8 chart I purchased 5 $190 calls and sold @ 3:56 for 7.10. This did a strong pull back and fell to 6.65 at the close. I will be watching this first thing in the morning on 2/8/23. Squeeze is still there.

Darcy3 Wrote:
-------------------------------------------------------
> When you see the band squeezing such as on RBLX
> starting on 10/14 to the close (on an 8 chart) you
> know you are at a time of low volatility. This is
> a signal to traders that this is future increased
> volatility and thus a trading signal. The more the
> BB separate the higher the probability in
> decreased volatility. John Bollinger suggests
> using the MACD and RSI. When I see a set up like
> RBLX on 10/14 I expect the stock to surge. Monday
> morning on the open I gave it a look see and I
> entered a call @ 9:55, drew my trend line and
> exited @ 1:36. You can see the expansion of the
> BB's and can be fairly certain the stock will pull
> back. I am not a day trader, but I seldom am in
> any trade longer that 1-2 hours. My shortest trade
> has been 2 minutes. I generally only do 1 trade a
> day and only when I see what shows me I may make a
> little "coin". Another signal I like is moving
> averages which actually I use almost all of the
> time. But I like seeing these squeezes. Some I
> trade and some I practice.


Wow, Darcy3, you really know your stuff. I'm really impressed by your experience and knowledge of the markets. It's great to see how you use different indicators to make informed trading decisions. Thank you for sharing this insight with us!